Is angel investment a liar?

Excuse me, angel investment is not a liar. Angelequity means that individuals contribute money to help entrepreneurs who have special skills or unique ideas but lack their own funds to start a business, cultivate and bear high risks in starting a business and enjoy high returns after success. Or a one-time upfront investment made by free investors or informal venture capital institutions to an original project idea or a small start-up. It is a form of venture capital, which invests according to the investment amount of angel investors and the comprehensive resources that the invested enterprise may provide.

And "angels" usually refer to investors who invest in very young companies and help them get started quickly. In the field of venture capital, the word "angel" refers to the first investors of entrepreneurs, who put money into the company before its products and business take shape. Angel investors are usually friends, relatives or business partners of entrepreneurs. Because they are convinced of the ability and creativity of entrepreneurs, they are willing to invest a lot of money in entrepreneurs before the enterprises come in. A typical angel investment is often only a few hundred thousand dollars, which is a fraction of the money that venture capitalists may invest in the future.

Usually angel investors don't expect high returns, but the returns of 10 to 20 times are enough to attract them. This is because when they decide to invest, they often invest in one industry 10 projects at the same time, and only one or two projects may succeed in the end. Only in this way can angel investors share the risk. Its characteristics are as follows:

1: The amount of angel investment is generally small, and it is a one-time investment, and its audit of venture enterprises is not strict. It is more based on investors' subjective judgment or personal likes and dislikes. Usually angel investment is invested by one person, and it will be closed when it is ready. This is a personal or small business activity.

2. Many angel investors are entrepreneurs themselves and understand the difficulties faced by entrepreneurs. Angel investors are the best financing targets for startups.

They are not necessarily millionaires or high-income people. Angel investors may be your neighbors, family, friends, company partners, suppliers or anyone who is willing to invest in the company.

4. Angel investors can not only bring money, but also bring contacts. If it is a celebrity, it can also enhance the credibility of the company.

Angel investment is often participatory investment, also known as value-added investment. After investing, angel investors often actively participate in the strategic decision-making and strategic design of the invested enterprise; Providing consulting services for invested enterprises; Help the invested enterprise to recruit managers; Assist in public relations; Design exit channels and organize enterprises to quit; Wait a minute. However, different angel investors have different attitudes towards post-investment management. Some angels invest and actively participate in post-investment management, while others do not.